Section 70-12-7 - Damages. - New Mexico Statutes

70-12-7. Damages.

In an action brought pursuant to the Surface Owners Protection Act, if the court finds that compensation is owed under Section 3 of the Surface Owners Protection Act [70-12-4 NMSA 1978] the court may also award the prevailing party:  

A.     attorney fees and costs if:  

(1)     the operator conducted oil and gas operations without providing notice as required by Subsection B of Section 4 of the Surface Owners Protection Act [70-12-5 NMSA 1978];

(2)     the operator conducted oil and gas operations without a surface use and compensation agreement and before depositing a bond or other surety as required by Section 5 of the Surface Owners Protection Act [70-12-6 NMSA 1978]; 

(3)     the operator conducted oil and gas operations outside the scope of a surface use and compensation agreement and, when entering into the agreement, knew or should have known that oil and gas operations would be conducted outside the scope of the agreement; or 

(4)     the surface owner failed to exercise good faith in complying with the provisions of the Surface Owners Protection Act or the terms of a surface use and compensation agreement; or  

B.     attorney fees, costs and treble damages if the court finds, by clear and convincing evidence, that: 

(1)     the operator willfully and knowingly entered upon the premises for the purpose of commencing the drilling of a well: 

(a)     without giving notice of the entry as required by Subsection B of Section 4 of the Surface Owners Protection Act; or 

(b)     without a surface use and compensation agreement with the surface owner and before depositing a bond or other surety pursuant to Section 5 of the Surface Owners Protection Act; or 

(2)     either the surface owner or the operator willfully and knowingly violated the surface use and compensation agreement.